This document is explaining the changes of Service tax posting. According to Kastam ruling, service tax is paid upon payment basis.
On QnE Delphi 747 version or Previous QnE Delphi 747 version.
1. Service Tax Code SVT-6% is posted to SST SERVICE TAX Account
2. When create transactions with SVT-6% tax code and system will Post the Service Tax Amount to SST SERVICE TAX Account.
Even the payment hasn’t received yet, this tax amount will reflect in SST 02 form – Item 11 c) also.
From QnE Delphi 748 version and above
1. System will have a new tax code SVTD-6% and have 2 Posting SST Service Tax Account.
GST/SST Posting Account GL Account posted to SST-5000 SST DEFERRED TAX
Posting Account (Payment) posted to SST-2000 SST SERVICE TAX
2. When create transactions with SVTD-6% tax code and system will Post the Service Tax Amount to SST DEFERRED TAX Account.
3. System will not reflect into SST 02 form yet.
4. Once receive payment and knock off with this transaction. System will reverse Service Tax Amount from SST DEFERRED TAX Account and Post into SST SERVICE TAX Account.
5. From this posting, system only reflect in SST 02 form – Item 11 c).
Refer attachment for details